The Brazil Securities Commission (CVM) board rejected settlement proposals from five individuals in an enforcement proceeding concerning alleged fraudulent securities trading. The decision, made at its Oct. 20, 2026, meeting, followed findings of a legal impediment to settlement and concerns that the proposals did not compensate losses and were disproportionate to the estimated potential economic benefit of BRL 724,650.50. The proposals were submitted by Ademar Mesquita Junior, Felipe Rodrigues do Nascimento, Leon Santiago Mendes Suhett, Pedro Henrique Ferreira Prado and Priscilla de Oliveira Monteiro, acting as investment advisers and an investor. The settlement committee found that the proposed payments for collective harm were insufficient relative to the potential benefit, undermining the settlement mechanism’s preventive and deterrent purpose. It also cited indications of possible criminal implications, with the facts already referred to the Federal Public Prosecutor’s Office. The proceeding concerns alleged fraudulent transactions between Jan. 3, 2022, and Sept. 20, 2023. A sixth individual accused in the case did not submit a settlement proposal, limiting the procedural savings from settling with the other five. The board followed the settlement committee’s recommendation to reject the proposals.
Brazil Securities Commission rejects settlement proposals in alleged fraudulent trading case involving estimated benefit of BRL 724,650.50
The Brazil Securities Commission rejected settlement offers from five individuals accused in a case involving alleged fraudulent securities trading between January 2022 and September 2023. The decision reflected a legal impediment, the absence of compensation for losses and proposed payments deemed disproportionate to an estimated potential economic benefit of BRL 724,650.50. Indications of possible criminal implications had already been referred to the Federal Public Prosecutor’s Office.